Dave Ramsey Group?

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Verrine
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I'm hoping that some of my DR friends from CafeMom join me here. New friends are good, too.
J&M Mom
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I’m trying to follow the principles of Dave Ramsey. It’s a bit hard. I have my emergency fund built up but we still need to put more in it just because my husband is paid commission. We did get a loan to consolidate two debts plus pay for a new ac unit. I know he doesn’t encourage that but we are not using the two credit cards we paid off with it.
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Lucy
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Verrine wrote: Sat May 26, 2018 8:32 am I'm hoping that some of my DR friends from CafeMom join me here. New friends are good, too.
I'm here from CM! I was able to shorten my UN to Lucy.
caustib
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I was in the CM group, too. That was such a good, supportive group!
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Verrine
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Happiness!
Lucy wrote: Sat May 26, 2018 9:36 pm
Verrine wrote: Sat May 26, 2018 8:32 am I'm hoping that some of my DR friends from CafeMom join me here. New friends are good, too.
I'm here from CM! I was able to shorten my UN to Lucy.
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Verrine
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I'm so glad you're here!
caustib wrote: Sat May 26, 2018 9:52 pm I was in the CM group, too. That was such a good, supportive group!
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Verrine
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Welcome!

I'm glad you have an emergency fund. Somehow, once that exists, there are fewer emergencies.

We tried debt consolidation. It's a short-term solution without a behavior change. Can you close all but one credit card account?

Yes, DR is challenging. We got rid of debt, then acquired medical debt. And, somehow, it's easier to pay off bills than to use the same amount to fuel savings. So, our snowball isn't growing.
J&M Mom wrote: Sat May 26, 2018 5:13 pm I’m trying to follow the principles of Dave Ramsey. It’s a bit hard. I have my emergency fund built up but we still need to put more in it just because my husband is paid commission. We did get a loan to consolidate two debts plus pay for a new ac unit. I know he doesn’t encourage that but we are not using the two credit cards we paid off with it.
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mcginnisc
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I didn't even know there was a DR group on CM. Dh and I did FPU several years ago to see what it was all about. We were already debt free ( minus mortgage), had an emergency fund, etc when we did it. We did apply a couple of his principles, but not many.
Our investments are over 15%, we skipped college funds and went to paying off the house..we are roughly $45K away from paying off the house now. We do not use the envelope system at all. We use credit cards and pay them off monthly. We do use his "sinking funds" idea though. Dh set me up a spreadsheet on google docs that tracks the amounts that get put into savings every pay check and does all the math for me. I also have a spreadsheet for the budget that I'm seriously anal about. LOL
We have always been serious savers, but by using his principles, we are now able to save several thousand more than we used to every month. Using his principles, we have also bought 2 vehicles in the past several years using cash! Boy, did that feel good! Dh bought a Jeep Wrangler a few years ago using cash and I just bought a Mazda CX5 in January with cash. It is so freeing not to have car debt.
Claire
"I can do all things through Christ who strengthens me." Philippians 4:13
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admin
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I actually have no idea about what the DR method is, or how it works. Care to enlighten me?
"It's not what you look at that matters, it's what you see."
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mcginnisc
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Basically, he has 7 baby steps..
They are as follows:
Baby Step 1 – $1,000 to start an Emergency Fund
Baby Step 2 – Pay off all debt using the Debt Snowball
Baby Step 3 – 3 to 6 months of expenses in savings
Baby Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement
Baby Step 5 – College funding for children
Baby Step 6 – Pay off home early
Baby Step 7 – Build wealth and give!

He also suggests getting play money every month ( whatever amount is decided upon), using cash for everything or his envelope method ( we don't do this as we use our debit cards and cc), cut up all cc, use sinking funds and a budget.

We did Financial Peace University through our Church several years ago just to see what it was all about. We already had step 1 as we have always had a savings account with well over his amount in it.. We had no debt except for our mortgage, we already had step 3 as well and hit about 20% for investments while taking the course. We skipped #5 and went to #6. We now owe $45K on our home and should have it paid off in a couple of years. Once we pay off our home, we will start socking away those payments into the kids' accounts. We use our debit cards and credit cards..we pay off cc monthly. We do budget and have sinking funds ( money put away every paycheck for things like car repair, insurance, clothing, education, car replacement, house repair...things like that). We have paid for 2 cars in cash since we started using his principles a few years ago. It is very nice to only have a mortgage and no other debt since we use his principles and save cash for big purchases like vehicles.





admin wrote: Tue May 29, 2018 11:19 am I actually have no idea about what the DR method is, or how it works. Care to enlighten me?
Claire
"I can do all things through Christ who strengthens me." Philippians 4:13
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